THE COST OF POWERING THE PUBLIC SECTOR
Oldham CCG and TRUSTECH spearhead healthcare challenge.
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Research carried out by leading energy consultancy Energy Management LLP has revealed that NHS Trusts spend an estimated half-a-billion pounds on gas and electricity.
Powering the public sector is a costly business.
Keeping offices, hospital wards, classrooms and leisure centres heated, lit, ventilated and air conditioned can be a major drain on finances.
And information obtained under the Freedom of Information act by Energy Management LLP, one of the country’s leading energy and water management consultancies, has revealed the true extent of the cost in some of these key sectors.
Of the 237 NHS Trusts contacted by Energy Management, 64 percent responded with their estimated annual energy consumption figures for both gas and electricity across all their sites coupled with the financial cost.
The combined total spent on energy for the financial year up to 2017 was an eye-watering £375 million. If you take the average amount per Trust and apply it across the board to all 237 Trusts, the figure would pass through the half-a-billion mark.
Unsurprisingly Barts Health, the largest NHS Trust in the country with a turnover of over £1.4 billion and a workforce of 16,000, topped the energy spend table with an estimated 12.6 million. Manchester University NHS Foundation Trust, with 76 hospitals and clinics, came a close second with £11.4 million.
For Councils too, many of whom are under severe financial pressure, energy accounts for a large proportion of their overall spend. Taking England, Scotland and Wales into consideration, the overall combined spend of 23 Councils (out of 79) that responded was an estimated £93.6 million. In Nottinghamshire County Council alone, £4 million was spent on electricity in 2016/17 for street lighting, signs and signals.
Increasingly there is a need for public sector organisations to lower energy bills, hedge against future volatility and adopt measures that help comply with green energy legislation.
Decarbonisation and government taxes and levies (third-party costs) now account for the majority share of energy bills (over 60% and rising), placing as much emphasis on energy efficiency as procurement. The phrase ‘the cheapest unit of energy is the one you never use’ is well-liked at Energy Management LLP for good reason.
For many organisations, time poverty means that managing the work required to reduce their energy consumption is an undesirable distraction from their day-to-day core activities. To further compound this, there may also be a lack of energy expertise and distinct skills gap creating barriers to finding savings and implementing reduction initiatives. This is where a reputable energy management consultancy can step in to remove these barriers and ease the way forward to achieve effective reductions.
It has never been more important to understand and control your energy costs and our bespoke energy management portal, EM-Powered, enables customers to do that. If you would like more information on EM-Powered and its wide range of features and benefits, please get in touch with Ian Scattergood on 01225 867722 or email firstname.lastname@example.org
About Energy Management
One of the UK’s leading energy consultancies, Energy Management LLP has been helping public and private clients reduce their energy and water costs since the turn of the Millennium. The company offers the full range of energy and water management services such as procurement, utility and budget management, consumption monitoring and reporting, legislation and compliance, change of tenancy and expansion, invoice validation and auditing as well as standard and bespoke energy efficiency projects.
Energy Management is an ISO 9001:2015 certified company and is a member of the Energy Institute and Energy Services & Technology Association (ESTA) as well as The Cast Metals Federation, the Aluminium Federation, Combustion Engineers' Association, Federation of Bakers and the Food & Drink Federation.
NHS Oldham Clinical Commissioning Group (Oldham CCG) is ahead of all CCGs in the innovation adoption lifecycle. At the forefront of discovering new and better ways of working, it boasts an enviable history of introducing new technologies and services to improve patient care.
“The adoption of new innovations that have a positive impact on patients’ health, whilst remaining cost effective, are key to the longevity, viability, and ultimately the success of our services. Innovation is high on our agenda, and to ensure we exploit all angles, we engaged a specialist organisation to keep us on track and explore new avenues,” explains Denis Gizzi, managing director at Oldham CCG.
NHS innovation experts, TRUSTECH, provide an indispensable and enviable link between NHS organisations and industry; Oldham CCG was confident that its multidisciplinary team would reveal new ideas that would otherwise have been off the CCG’s radar. “TRUSTECH is at the centre of all facets of healthcare innovation; it works exclusively in this area, and knows it inside out. They devised, managed and delivered an exciting and forward-thinking programme,” recalls Denis.
A Dragon’s Den style initiative to identify and evaluate innovations was proposed; a process that had not yet been transferred to the sector as Denis confirms, “Dragons’ Den is a well-known format in the commercial world, popularised by television. However, until this point, a CCG had never embraced it before, so the buzz surrounding this initiative was phenomenal.”
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